ACA Disrupts Business Model for Health Insurance Companies

After years of selling insurance plans in large measure to private employers, the ACA now requires private insurers to begin selling to individuals. The ACA has mandated public Health Insurance Exchanges within which qualifying employees will pick and choose from among multiple insurance plans within their market.  This represents a radical, disruptive change in the health insurance market.

Of special interest to many employers (and employees for that matter) is the simultaneous development of private insurance exchanges wherein employers contribute a fixed amount toward a health policy but then have the employee choose the level of plan and the insurer they prefer. 

It is hard to imagine a more disruptive model to the health insurance industry’s historical approach to selling insurance. It is also difficult to imagine a more exciting time in the health care industry.  Let’s all stay tuned!

William Bithoney, MD